Marks : 2 

a)

b)

c)

d)

Future estimated price

Prevailing market price

Prevailing book price

Historical market price

44.	To measure the current yield on the bond, it's coupon rate is compared with :-

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 True/False

  Question  

Investment in gilt edged securities carry a higher element of risk.

  Correct Answer  

False

  Your Answer  

False

 

 Select The Blank

  Question  

The Derivative market is divided into Future market and ________ market.

  Correct Answer  

Options

  Your Answer  

Options

 

 Select The Blank

  Question  

________ of companies may open at higher or lower price than the issue price.

  Correct Answer  

IPO's

  Your Answer  

Market price

 

 True/False

  Question  

Equity shares is a high return high risk instrument.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

When you are making an investment you are expecting certain future benefits from your investment.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

The Two-Stage dividend discount model is based on the assumption of :-

  Correct Answer  

An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever

  Your Answer  

An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever

 

 Multiple Choice Single Answer

  Question  

Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:-

  Correct Answer  

Rs. 9639/-

  Your Answer  

Rs. 9639/-

 

 Multiple Choice Single Answer

  Question  

What is Gross National Product ?

  Correct Answer  

Gross income generated from within the country

  Your Answer  

Gross income generated from within the country

 

 Multiple Choice Single Answer

  Question  

What does a Balanced fund seek to achieve?

  Correct Answer  

Growth and regular income

  Your Answer  

Growth and regular income

 

 Match The Following

Question

Correct Answer

Your Answer

Weak form model is also termed as

Random walk model

Random walk model

Investors are rational

Efficient market hypothesis

Efficient market hypothesis

Securities current prices fully reflect all historical information

Weak form EMH

Weak form EMH

Framework on efficient capital markets, a review of theory and empirical work

Fama

Fama

 

 Multiple Choice Multiple Answer

  Question  

Which ratios are commonly used?

  Correct Answer  

Interest coverage ratios , Debt service coverage ratios , Debt equity ratio

  Your Answer  

Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

 

 Multiple Choice Single Answer

  Question  

Under EMH it is assumed that if markets are efficient, securities are priced to provide a :-

  Correct Answer  

Normal returns for their given level of risk

  Your Answer  

Normal returns for their given level of risk

 

 Multiple Choice Multiple Answer

  Question  

Return can be in the form of :-

  Correct Answer  

Dividends , Interests , Capital appreciation

  Your Answer  

Dividends , Interests , Capital appreciation

 

 Multiple Choice Single Answer

  Question  

Profits are non existent in pioneering stage because of :-

  Correct Answer  

Heavy expenses on product introduction

  Your Answer  

Heavy expenses on product introduction

 

 Select The Blank

  Question  

Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be.

  Correct Answer  

Central tendency

  Your Answer  

Central tendency

 

 Select The Blank

  Question  

________ identified five forces that determine the intrinsic long run profit attractiveness of a market or market segment.

  Correct Answer  

Michael Porter

  Your Answer  

Michael Porter

 

 Match The Following

Question

Correct Answer

Your Answer

MCX

Commodity Exchange

Commodity Exchange

Sensex

BSE Index

BSE Index

Nifty

NSE Index

NSE Index

Lifex

ET Index

ET Index

 

 Multiple Choice Multiple Answer

  Question  

Mutual fund schemes could be broadly classified as :-

  Correct Answer  

Open ended scheme , Close ended scheme

  Your Answer  

Open ended scheme , Close ended scheme

 

 Multiple Choice Multiple Answer

  Question  

Which are the most popular types of orders placed through an online trading account?

  Correct Answer  

Limit orders , Market orders

  Your Answer  

Limit orders , Market orders

 

 Multiple Choice Single Answer

  Question  

Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years?

  Correct Answer  

Rs.14.693/-

  Your Answer  

Rs.14.693/-

 

 Multiple Choice Multiple Answer

  Question  

Growth of the firm can be estimated through :-

  Correct Answer  

Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals

  Your Answer  

Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals

 

 Multiple Choice Single Answer

  Question  

What is the rate of interest on the tax free bonds issue by the government?

  Correct Answer  

6.5%

  Your Answer  

6.5%

 

 Multiple Choice Multiple Answer

  Question  

Which of the following are important momentum indicators used widely?

  Correct Answer  

Moving average convergence divergence(MACD) , Rate of change (ROC) , Relative strength indicator (RSI)

  Your Answer  

Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD)

 

 Select The Blank

  Question  

________ measures the profitability of operations without considering the influence of financial structure and tax rate.

  Correct Answer  

Earnings power

  Your Answer  

Earnings power

 

 Multiple Choice Single Answer

  Question  

When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :-

  Correct Answer  

The General model

  Your Answer  

The General model

 

 Select The Blank

  Question  

________ deal in futures to offset a pre-existing risk.

  Correct Answer  

Hedger

  Your Answer  

Hedger

 

 Multiple Choice Multiple Answer

  Question  

What are the different types of profitability ratios?

  Correct Answer  

Gross profit margin ratio , Earnings power , Return on equity

  Your Answer  

Gross profit margin ratio , Return on equity , Debt service coverage ratio

 

 Multiple Choice Multiple Answer

  Question  

To measure the movement of stocks in the market which indices were constructed by Dow?

  Correct Answer  

Dow Jones industrial Average , Dow Jones Transportation Average

  Your Answer  

Dow Jones industrial Average , Dow Jones Transportation Average

 

 True/False

  Question  

The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

If rupee weakens against the dollar, it has favourable impact for the importers.

  Correct Answer  

False

  Your Answer  

False

 

 True/False

  Question  

A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

Active investment managers :-

  Correct Answer  

Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns

  Your Answer  

Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns

 

 Multiple Choice Multiple Answer

  Question  

What are the features of candle stick charts?

  Correct Answer  

Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price

  Your Answer  

Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price

 

 True/False

  Question  

Bonds and Debentures represent long term debt instruments.

  Correct Answer  

False

  Your Answer  

False

 

 Select The Blank

  Question  

The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets.

  Correct Answer  

Correlation coefficient

  Your Answer  

Correlation coefficient

 

 Select The Blank

  Question  

A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%.

  Correct Answer  

5

  Your Answer  

5

 

 True/False

  Question  

The performance of a scheme is reflected in its NAV which is disclosed on a daily basis in case of open ended schemes.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

A firm's growth is determined by how much is re-invested into new assets and the quality of these investments, and these includes :-

  Correct Answer  

Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities

  Your Answer  

Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities

 

 True/False

  Question  

Currently in India index options are both European and American in nature.

  Correct Answer  

False

  Your Answer  

False

 

 Multiple Choice Single Answer

  Question  

A security represent evidence of :-

  Correct Answer  

A property right

  Your Answer  

A property right

 

 Multiple Choice Single Answer

  Question  

Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years?

  Correct Answer  

Rs. 6083/-

  Your Answer  

Rs. 6083/-

 

 Multiple Choice Single Answer

  Question  

When a firm can grow net profits by issuing equity, the expected growth rate in net profits is determined by :-

  Correct Answer  

Equity reinvestment rate X return on equity

  Your Answer  

Equity reinvestment rate X return on equity

 

 True/False

  Question  

Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current.

  Correct Answer  

True

  Your Answer  

True

 

 Select The Blank

  Question  

UTI was set up in the year ________.

  Correct Answer  

1963

  Your Answer  

1963

 

 Select The Blank

  Question  

The regulations of SEBI with respect to mutual funds were fully revised in the year ________.

  Correct Answer  

1996

  Your Answer  

1996

 

 Select The Blank

  Question  

________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them.

  Correct Answer  

Speculators

  Your Answer  

Speculators

 

 Multiple Choice Single Answer

  Question  

What do you understand by money supply?

  Correct Answer  

Total money in existence at any given time

  Your Answer  

Total money in existence at any given time

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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